- September 07, 2018
- Bulletin No: 2018-17
The Federal Home Loan Bank of Dallas (Bank) will launch a new small business assistance program to replace the Economic Development Program Plus (EDPPlus) grant program. This new loan program, which will roll out as a pilot in January 2019, will be structured to provide a financial boost to small businesses in their first few years of operation. With the rollout of the pilot program, the Bank will no longer offer EDPPlus grants. However, members will continue to have access to Economic Development Program (EDP) advances.
Since 2008, the Bank has awarded $10.4 million in EDPPlus grants to assist 549 small businesses with funding for various needs ranging from start-up costs to equipment and inventory purchases. We anticipate that the funding for the new loan program will exceed the Bank's current annual outlay of $750,000 for the EDPPlus grant program, and its structure will provide increased support for small businesses and job creation.
The new program will make funds available for members to provide secondary/unsecured loans to qualified small businesses that would not otherwise meet member loan underwriting criteria. The new loan program is intended to help members invest in their community businesses by filling the gap in those instances where there is a lack of equity, unique collateral or an appraisal shortfall. As small businesses grow and repay their loans, funds will be recycled into the program to provide loans to other small businesses. This new structure will have the effect of helping members make more loans to more small businesses and create more jobs over time.
More information, including details for member enrollment in the pilot program, will be announced in the fourth quarter of 2018.
Sanjay K. Bhasin
President and Chief Executive Officer